Suzhou Secote Precision Electronic Co.,LTD's (SHSE:603283) CEO Feng Sun is the most upbeat insider, and their holdings increased by 4.5% last week

Key Insights

• Suzhou Secote Precision ElectronicLTD's significant insider ownership suggests inherent interests in company's expansion
• A total of 4 investors have a majority stake in the company with 50% ownership
• 22% of Suzhou Secote Precision ElectronicLTD is held by Institutions

If you want to know who really controls Suzhou Secote Precision Electronic Co.,LTD (SHSE:603283), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 42% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, insiders benefitted the most after the company's market cap rose by CN¥526m last week.

In the chart below, we zoom in on the different ownership groups of Suzhou Secote Precision ElectronicLTD.

View our latest analysis for Suzhou Secote Precision ElectronicLTD

What Does The Institutional Ownership Tell Us About Suzhou Secote Precision ElectronicLTD?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in Suzhou Secote Precision ElectronicLTD. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Suzhou Secote Precision ElectronicLTD, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Suzhou Secote Precision ElectronicLTD. With a 21% stake, CEO Feng Sun is the largest shareholder. For context, the second largest shareholder holds about 20% of the shares outstanding, followed by an ownership of 7.5% by the third-largest shareholder.

On looking further, we found that 50% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Suzhou Secote Precision ElectronicLTD

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

It seems insiders own a significant proportion of Suzhou Secote Precision Electronic Co.,LTD. It has a market capitalization of just CN¥12b, and insiders have CN¥5.1b worth of shares in their own names. That's quite significant. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 34% stake in Suzhou Secote Precision ElectronicLTD. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Suzhou Secote Precision ElectronicLTD better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Suzhou Secote Precision ElectronicLTD you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.